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ACCA Applied Knowledge · Business and Technology · Social and demographic factors

A country has a falling birth rate and rising life expectancy, so the proportion of people aged over 65 is growing steadily. Which business implication is most directly supported by this trend?

Rising demand for healthcare and retirement-related services is the most direct implication, because a larger share of older people needs more medical care, care homes and pension products. A falling birth rate also shrinks the young workforce and children's markets.

  1. ARising demand for healthcare and retirement-related servicesCorrect
  2. BA growing pool of young workers available to employers
  3. CGreater demand for children's toys and school supplies
  4. DLower dependency on pension and health systems

Explanation

An ageing population increases demand for healthcare, care homes and retirement products. A growing young workforce and higher toy demand would follow from a rising birth rate. Dependency on pensions and health systems increases, not decreases, as the elderly share grows.

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